Abstract
The impact of international trade on the level and distribution of income has been the field of focus in international economics. There have been empirical studies supporting and opposing trade openness but most of the studies drew the results from cross sectional data. In this study, we use panel data to investigate the trade's impact on levels and distribution of income. Analysis of a balanced panel of country level data revealed that trade openness increases income. Results using an unbalanced panel data set revealed that trade openness increases income inequality in the overall sample but when we split the sample in to two groups, trade increases inequality in developing countries but it reduces inequality in developed countries though the coefficient is not statistically significant.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
